We tend to think of flooding in southern states like Florida and Louisiana when we think about it. FEMA says that 99% have been affected by major flooding in the United States in the last 20 years. Flooding can cause water damage to New Jersey residents. Flood coverage is often not included in standard homeowner’s insurance policies. Residents should make sure they have flood insurance through either their current provider or an alternative insurer.
A flood insurance policy can protect you from financial hardship in case of a catastrophic flood to your home. A policy like this can help you recover from a flood, especially if you live near Jersey. Continue reading to learn more about New Jersey flood insurance.
Flood Insurance is a must for New Jersey homeowners
FEMA’s historical flood cost and risk data shows that New Jersey is the state most at risk of flooding. Every single New Jersey county experiences at least 50 flood events per year. New Jersey’s average claim payment is almost $38,000. This means that families without flood insurance could face out-of-pocket expenses of up to $30,000. New Jersey residents should get flood insurance as soon possible due to the high level of flooding in the state.
Flood insurance in New Jersey: What is the cost?
According to the National Flood Insurance Program (NFIP), an average flood insurance policy in New Jersey is $954 per year. The cost of insurance can vary depending on the key factors considered when calculating premiums. These factors include:
- Localization
- Flood risk
- Select coverage options
- Design and age of your home
- Minimum amount
- Coverage for building/contents
- Home value
Flood Insurance: When should you purchase it?
Some homeowners might choose to delay their flood insurance until the storm hits. This plan could backfire as flood insurance providers often require policyholders to wait at least 30 business days before their policy is activated and they can file a claim. Flood insurance coverage is essential for homeowners who own property in New Jersey. Each county experiences 50 or more floods per year. New Jersey residents who are unable to get coverage immediately should consider buying coverage in the season with the most rainfall (late summer and spring).
Flood Insurance in New Jersey: How to Purchase
It is easy to purchase a New Jersey flood insurance policy by simply contacting your existing provider to add flood coverage. If your provider doesn’t offer optional flood coverage, you can apply through the NFIP network. Due to the high number of flood events in the state, there are many flood insurance providers available. Two types of flood insurance policies are typically offered by insurers: dwellings coverage or contents coverage. While dwellings coverage provides financial protection against structural damage to your house, contents policies protect you from any damage to personal property. To ensure you have the right coverage, review your flood insurance policy with your provider.
Most Frequently Asked Questions
Flood insurance is required in New Jersey
Although flood insurance is optional, some New Jersey mortgage lenders may require that you have one in order to finance your home. If you are moving to New Jersey, it may be necessary to have flood insurance. New Jersey is more susceptible to flooding than other parts of the country.
I already have homeowners insurance. Are you covered?
No. Flood coverage is not typically included in standard homeowners’ or renters’ insurance policies. Flood coverage will be added by homeowners to their existing insurance provider or through an NFIP-listed insurer.
FEMA already provides disaster relief for floods. Why do I need coverage?
FEMA provides disaster assistance to floods declared emergencies by the President. However, they are not able to provide assistance for all flooding situations. Flood insurance coverage is essential for homeowners. A claim for flood insurance may be paid regardless of whether the President declared the situation an emergency. This means that you will have financial protection in case of water damage to your home, regardless of whether FEMA has provided resources.
